The Positive Economic Impacts of Home Construction in NY

Damon Sabatini

September 26, 2022

The Positive Economic Impacts of Home Construction in NY - Damon Sabatini

New York’s construction industry has created an estimated 349,000 jobs. Since 2011, it has contributed $54 billion to the local economy. Between 2011 and 2015, the industry also created 31,800 jobs in affordable housing. This article explores how New York can foster new home construction and sustain its affordable housing market.

New York City’s construction industry created 349,000 jobs in 2016

The construction industry has contributed to the city’s economy, creating 349,000 jobs in 2016. In addition, its output generated $11.8 billion in wages in 2016. And nearly a quarter of construction workers in the city earned more than $80,000 a year. New York City’s construction industry is also a significant employer of immigrants, with nearly half of the workforce made up of immigrants. Additionally, construction firms generated $85 billion in economic activity, representing 7.8 percent of the city’s total economic output.

In the last decade, New York City’s construction industry was the city’s fastest-growing sector, creating more than 349,000 jobs in 2016. However, this growth slowed after the pandemic struck, and the unemployment rate increased from 8.4% to 8.2% in April. Despite the improvement in unemployment numbers, the construction sector in New York City is still lagging far behind the national average. The state’s construction industry reached a record 406,600 jobs in 2016, but in 2017 the industry lost almost 11,000 jobs. This is the most significant decline in the country.

The construction industry benefits consumers, workers, and local governments in many ways. It provides a range of high-paying jobs accessible to people with no college degree. It also provides an outlet for savings in the economy. With a growing demand for buildings, construction is a better long-term source of blue-collar jobs than most manufacturing industries.

It generated $54 billion in economic activity between 2011 and 2015

The Building Congress reports that the positive economic impacts of home construction in NY generated $12.1 billion in direct spending and $54 billion in economic activity between 2011 and 2015. This is not all; the positive impact of construction on the local economy includes all employment and wages generated in the service industry, as well as wages spent on local consumer purchases. The Building Congress reports that each dollar spent on residential construction in NY generates $.56 in economic activity.

Home construction in NY is one of the most critical sectors of the local economy. However, over-construction can stifle economic growth in a region. For example, the over-construction of construction projects can offset the economy’s natural growth. Therefore, it is essential to consider the costs associated with construction projects before making any economic decisions.

In 2016, construction in NY created more than 349,000 jobs in the local economy. This includes jobs in design and engineering, as well as construction services. The industry is responsible for more than 70,000 jobs in New York City. The positive economic impacts of home construction in NY generated $54 billion in economic activity between 2011 and 2015. The construction sector is a good source of job growth and provides employment.

It created 31,800 jobs in affordable housing

According to a study commissioned by the New York State Association for Affordable Housing, the construction of affordable housing creates more than 31k construction jobs in the state each year. In addition to these temporary jobs, affordable housing construction sustains a total of 5,650 permanent jobs in the state. These new homes also generate over $1.6 billion in spinoff activity during construction and $650 million in annual economic spending, making affordable housing a vital economic engine.

Moreover, affordable housing also contributes to the long-term prosperity of local economies. Adding more jobs to a community creates more opportunities, spurs growth, and creates a healthier economy. This is because affordable housing encourages more people to become mobile, which means more jobs and significant growth for cities. While some of these jobs are more immediate, others are long-term and can help bring about meaningful change in a community.

Moreover, affordable housing construction also helps support the local economy by increasing the number of available workers. This, in turn, reduces employers’ costs since they do not have to hire new workers as frequently. In addition, residents of affordable housing communities also spend more at local businesses and have better health, as they can spend more on nutritious food and recreational activities.

Affordable housing is a critical need in New York. With the professional class growing in the city, it is vital that housing in the central business district be affordable for renters. But this growth in the city is outpacing supply, resulting in a shortage of low-income homes in the central business district.